Latest news with #AsianEquities
Forbes
a day ago
- Business
- Forbes
China Market Update: Consumer & Health Care Stocks Outperform Despite More Trade Drama
CLN Asian equities were mostly higher overnight as Korea and Taiwan outperformed while the Philippines and Thailand underperformed, as most local currencies gained against the US dollar. Hong Kong gained overnight and was one of the top-performing regional markets amid optimism about a trade deal despite Trump's comments about Xi being 'extremely hard' to deal with. The market also shrugged off the increase in steel tariffs by the US overnight. While the situation appears to be deteriorating, Trump did also heap praise on the Chinese leader, saying he 'always liked him'. The president apparently recognizes Xi as a tough negotiator, just as he presents himself to be. Fingers crossed for a deal soon! Though, they can also always extend the truce and exemptions. After lowering its growth expectations for the US, the OECD also lowered growth expectations for China's economy on trade issues, but left its GDP growth estimate for 2024 unchanged at 4.7%. Remember exports to the US represent only 2% of China's GDP, and they definitely will not even be going to zero! Combined with stimulus, the hit to GDP will be very minimal. Nonetheless, I cannot emphasize enough investors should focus on growth and technology and companies focused on domestic demand! We saw this play out overnight as consumer-oriented names outperformed significantly. Healthcare was a top-performing sector in both Hong Kong and Mainland China. Innovent Biologics gained +14% after the first phase of a trial of its new obesity medication. Meanwhile, nuclear energy company CGN Mining surged +23%, consumer names such as Pop Mart and Miniso were especially strong, and the electric vehicle (EV) ecosystem rebounded as investors finally realized that May sales data were strong. The Ministry of Industry and Information Technology (MIIT) announced new support for the use of electric vehicles, especially in rural areas in Western China. This is a key a market for growth but is plagued by the lack of charging infrastructure. South Korea's decisive election result calmed its markets and represents a return of political stability in the nation after martial law was introduced this past December. South Korea's markets and currency have been volatile, despite companies like SK Hynix being important players in global AI development. New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Bloomberg
3 days ago
- Business
- Bloomberg
Good Prospects for Chinese Companies to Flourish, HSBC Says
HSBC's Herald van der Linde shares his outlook for Asian and Chinese equities on Bloomberg Television. He says "there is good prospects for these companies to flourish." For the Chinese stock market in particular, he advises looking at banks as well as "companies that will become global leaders in their respective industries," such as EVs and industrial robotics. (Source: Bloomberg)
Forbes
28-05-2025
- Business
- Forbes
China Market Update: Fund Flows Highlight Curbed Enthusiasm
CLN KraneShares Asian equities had mixed performance overnight as the US dollar weakened and South Korea led gains in the region. Neither Hong Kong nor Mainland China managed to hold onto early morning gains, as both markets slid to post small losses. Hong Kong's decline was driven by PDD's significant financial results miss and large investments that weighed on the company's bottom line. Sell-side analysts' estimates were off by a wide margin; in their defense, the company has never broken out Temu's results from domestic China revenue, making transparency an ongoing issue. PDD's investment plans raised concerns about margin contraction and the potential for a price war, which weighed on E-Commerce stocks including Alibaba (-1.95%), Meituan (-0.53%), and Inc. (-1.4%). The downdraft was despite a Mainland China media report noting that early sales for the 618 (June 18th) shopping festival, similar to Singles Day, were up fourfold year-over-year (YoY), with 80,000 brands seeing double the turnover and 500 million orders already placed. The decline in Hong Kong largely matched the performance of US-listed China stocks, though not all internet stocks were down. Kuaishou Technology (+5.95%) rose after strong first-quarter results driven by its Kling artificial intelligence initiative. Other notable gainers included NetEase Inc. (+2.81%), Tencent Music Entertainment Group (+1.36%), Bilibili Inc. (+2.29%), and Group Limited (+1.48%). and other consumer-related stocks were higher on a government report estimating that 2.15 million people, an increase of 12.2% year-over-year, will travel overseas or visit China during the upcoming Dragon Boat Festival. Pop Mart International Group Limited (-7.12%) declined, though there was no clear catalyst aside from the stock's 141% year-to-date gain. Electric vehicles (EVs) and autos were mixed and continued to face pressure following reports that dealers sold new cars as old inventory to lower prices. BYD Company Limited (-2.68% in Hong Kong) refuted claims of an aggressive dealer buildout in Shandong Province that had attracted significant attention in Mainland China. In a weekend interview, Great Wall Motor Company Limited's Chairman Wei Jianjun stated, 'The 'Evergrande' in the automobile industry already exists, it just hasn't exploded yet.' Reports cited April car production at 2.23 million units versus 1.75 million in sales, with EV inventories rising to 850,000 units from 660,000 at year-end. Following a sharp rally, BYD appeared due for a pullback, though the 50-day moving average may act as support. Hong Kong saw relative strength in air freight, coal, beverages, restaurants, and oil and gas, while banks, Tencent, Alibaba, Meituan, and BYD weighed on the indices. In Mainland China, healthcare, precious metals, oil, coal, and transportation/ air freight outperformed. The Mainland China fund industry reached assets under management of RMB 33.12 trillion after an increase of RMB 900 billion in April. Most flows went into money market funds (RMB 664 billion), followed by fixed income (RMB 140 billion) and stock funds (RMB 112 billion), reflecting a lack of risk appetite. A Reuters article yesterday highlighted that 'Chinese savers decry falling deposit rates but still won't spend more,' noting that 'at the end of March, total household deposits surpassed 160 trillion yuan ($22.3 trillion), up 10.3% from a year before, and equivalent to 118% of last year's gross domestic product (GDP).' The ongoing decline in real estate prices and the absence of a social safety net remain key issues. The summit of the Association of Southeast Asian Nations (ASEAN), the Cooperation Council for the Arab States of the Gulf, and China concluded a joint summit in Kuala Lumpur overnight. While there may be headlines about China waiving visas, the joint statement focused on economic integration, connectivity, energy security, sustainability, digital transformation, innovation, agriculture, and people-to-people exchange. As I observed during my recent travels in Asia, there is a big world out there conducting business with one another, largely unconcerned with developments in Washington, DC. Upcoming Live Webinar Join us Friday, May 30, at 11 am EDT for:Innovation In Hedged Equity - With Hedgeye's CEO Keith McCullough Please click here to register New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
Reuters
26-05-2025
- Business
- Reuters
Asian hedge funds regain lost ground in May, increasing leverage
HONG KONG, May 26 (Reuters) - Asian equity-focused hedge funds have risen in May, erasing April's tariff-driven losses and returning to year-to-date highs on the back of broad market gains. Asia-focused fundamental long-short hedge funds have posted a gain of 1.6% so far this month, bringing year-to-date performance back to the first-quarter high of 6.1%, according to a Goldman Sachs note citing data as of May 22. A strong stock market rebound, fueled by the U.S.-China agreement to temporarily slash tariffs, helped regional managers recover from early April losses, the bank said. By country, China-focused fundamental managers have returned 1.3% in May, while Japan-focused peers are up 0.8%, Goldman Sachs estimated. However, the gains lag major benchmarks, as many funds had aggressively cut positions amid extreme volatility in early April. The MSCI Asia-Pacific Index (.MIAP00000PUS), opens new tab has advanced more than 4% this month. "The V-shaped recovery was hard to trade for some," said Patrick Ghali, managing partner of hedge fund advisory firm Sussex Partners. Depending on positioning, Asian hedge funds' performance has diverged since April and "we will see a lot more dispersion of returns", he added. Goldman Sachs noted dispersion is particularly high in hedge funds trading Japanese shares. Despite ongoing tariff and geopolitical uncertainties, most hedge funds appear more willing to take on risk. Net exposure among Asian equity hedge funds jumped to 50.8% as of May 22, up from 46% at the end of April, Goldman Sachs says.
Yahoo
26-05-2025
- Business
- Yahoo
Asian hedge funds regain lost ground in May, increasing leverage
By Summer Zhen HONG KONG (Reuters) -Asian equity-focused hedge funds have risen in May, erasing April's tariff-driven losses and returning to year-to-date highs on the back of broad market gains. Asia-focused fundamental long-short hedge funds have posted a gain of 1.6% so far this month, bringing year-to-date performance back to the first-quarter high of 6.1%, according to a Goldman Sachs note citing data as of May 22. A strong stock market rebound, fueled by the U.S.-China agreement to temporarily slash tariffs, helped regional managers recover from early April losses, the bank said. By country, China-focused fundamental managers have returned 1.3% in May, while Japan-focused peers are up 0.8%, Goldman Sachs estimated. However, the gains lag major benchmarks, as many funds had aggressively cut positions amid extreme volatility in early April. The MSCI Asia-Pacific Index has advanced more than 4% this month. "The V-shaped recovery was hard to trade for some," said Patrick Ghali, managing partner of hedge fund advisory firm Sussex Partners. Depending on positioning, Asian hedge funds' performance has diverged since April and "we will see a lot more dispersion of returns", he added. Goldman Sachs noted dispersion is particularly high in hedge funds trading Japanese shares. Despite ongoing tariff and geopolitical uncertainties, most hedge funds appear more willing to take on risk. Net exposure among Asian equity hedge funds jumped to 50.8% as of May 22, up from 46% at the end of April, Goldman Sachs says. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
